The euro has weakened steadily against the Albanian national currency this year, with the Europe’s single currency decreasing 4.4% since the start of 2026 and 4.8% from the same period a year earlier.

The U.S. dollar was exchanged at 79.06 leks, down 0.08 lek, while the British pound and Swiss franc traded at 107.98 leks and 98.99 leks, respectively.

Albania operates a free-floating exchange-rate regime, with the lek’s value against foreign currencies determined by supply and demand in the foreign-exchange market.

/j.p/r.e/u.sh/

The euro fell 0.11 lek from the previous day, reaching another multi-year low.

The U.S. dollar, meanwhile, strengthened by 0.08 lek to 80.61 leks, while the British pound rose 0.10 lek to 108.82 leks.

The Swiss franc moved in the opposite direction, falling 0.29 lek to 99.38 leks.

The latest currency movements continued to reflect the strengthening of the Albanian national currency against the euro, amid shifts in supply and demand in Albania’s foreign exchange market.

/a.f/r.e/u.sh/

In a video message, Tabaku, who chairs parliament’s Committee on Human Rights and Public Information, said corruption has spread across the economy, from energy and information technology to agriculture and garment manufacturing, undermining the “Made in Albania” label.

She said agriculture has been damaged by policies that favour a small group of large farmers, leaving most without support, while rising costs and fiscal burdens have further weakened the sector, which once accounted for about 20% of gross domestic product.

Tabaku criticised fiscal policies that, she said, have added around 20% in extra costs for farmers while subsidies have been lacking or distributed in a clientelist manner.

She said the result is a “captured” economy in which domestic production is failing, agriculture and garment manufacturing are shrinking, and Albania is being depopulated, adding that the situation can and must change.

/e.i/r.e/a.f/u.sh/

On the other hand, the Europe’s single currency Euro slightly depreciated compared to last weekend.

According to the Bank of Albania’s fixed exchange rates, one Dollar was exchanged at 88.23 Lek, up by  0.98 Lek, whereas the Euro depreciated by 0.03 Lek and was traded at 98.18 Lek.

The Great Britain’s Pound fell by 0.61 Lek and it was exchanged at 116,43 lek and the Swiss Franc was traded at 104.61 Lek, down by 0.45 Lek.

/r.e/j.p/u.sh/

The Europe’s single currency fell to historic low since April and one Euro is being traded at around 100 Lek since then.

Foreign exchange market experts say that the exchange rate continues to be affected by the seasonal factor, with a large inflow and high Euro and other foreign currency supply. Data show that the peak of the effect of the summer season on the exchange rate is reached between the end of July and the beginning of August.

The high influx of foreign visitors to the country implies higher Euro supply to the domestic market, combined with a recent downward trend in the value of the Europe’s single currency in the international market.

Euro has lost 13 points compared to the same period of the previous year.

Taking notice of the Euro depreciation, Albania’s central bank has intervened to purchase the European currency in the market in a bid to prevent the Euro from further depreciating below the 100 Lek rate.

Bank of Albania has purchased 32.60 million Euros in the first quarter of the year alone to stop its further depreciation.

In the last quarter, central bank has held three auctions to increase its foreign exchange reserve and it plans to enhance its intervention during the summer months. Bank of Albania plans to purchase around 330 million euros this year.

/u.sh/

Governor Sejko told a press conference that the Central Bank does not plan to intervene in the exchange rate to stop the fast rise of the national currency against leading international currencies, saying Lek appreciation is driven by seasonal factors.

Sejko also said that the sharp rise in the value of Lek is also being stimulated by the improved economic activity.

“The inflow of euros to the country is mainly stimulated by tourism, foreign investments, the purchase of immovable properties by non-residents and by a higher influx of remittances. Taking notice of this, there are no reasons for the Central Bank to intervene in the market,” he said.

According to the fixed rate of the Bank of Albania, one Euro was traded at 104.55 Lek today, down by 0.3 Lek compared to a day ago.

The European single currency, the Euro, has fallen by me 11.5 Lek or by around 10% since beginning of the year, or down by 12.1% compared to July 5, 2022. The appreciation of the Lek has gained speed since May in particular.

/u.sh/

According to the central bank, bank savings fell to 1.27 trillion lek or around 11 billion euros in end of March 2023, shrinking by 0.9 % or by around 11.3 billion lek compared to a month ago.

Lek-denominated and foreign currency-denominated loans pursued a downward trend.

Bank data show that bank savings amount to 549 billion lek, down by 0.22 % compared to the previous month of February.

Central bank has increased its key interest rate to 3 % currently, from 0.5% in March last year.

Commercial banks have followed the suit, offering higher rates for the deposits in a bid to increase savings.

/r.e/u.sh/

Europe’s single currency hit a 2-month low of 120.36 lek against Albania’s national currency in December 2021, falling to its lowest level against Albanian national currency since December 2007, when the euro fell to the lowest rate of all times being traded at 120.18 lek.

Euro was traded at 123.7 lek in January 2021, the highest level throughout last year.

Data from the fixed exchange rate of the Bank of Albania showed that the single European currency slightly depreciated to be exchanged at 122.9 lek in April, whereas it further declined to be traded at 121.2 lek, recording the lowest rate during summer season when single currency keeps falling as the currency supply grows due to the growing visitor numbers and due to inflows of remittance with thousands of migrants returning home to spend summer vacations.

The European currency gained significant ground against Albania’s lek by end of October and beginning of November, when it was exchanged at 123 lek, mainly driven by the strong demand for international currency in the domestic market.

The depreciation of the Euro is good news for importers and borrowers in Euro who have their income in lek, but bad news for Albanian exporters and those who have their income in Euro. The weaker European currency is also not favourable for the online shopping and those who travel abroad.

/a.a/u.sh/